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News/EU adopts plan to slash household power bills by reforming renewable energy taxes
climate & environmentestoniagermanyeuropean union

EU adopts plan to slash household power bills by reforming renewable energy taxes

19 articles·16 sources·updated about 2 hours ago·View in graph
climate & environmentestoniagermanyeuropean union
Hosted in Europe · Mistral AI

The European Union is poised to adopt sweeping measures to slash household electricity bills by reforming renewable energy taxation, as Brussels races to cushion consumers from soaring power costs ahead of the COP31 climate summit in Antalya. On Saturday, delegates at the Istanbul Zero Waste Forum endorsed circular-economy strategies that link municipal waste-reduction policies to Türkiyes hosting of the UN climate conference in November, underscoring how waste management and energy pricing are converging in the EU’s green transition.

Under the draft regulation, seen by this newspaper, Brussels will push member states to exempt clean-energy levies from value-added taxes and to deploy smart meters that let households sell surplus solar or wind power back to the grid at market rates. The plan targets the bloc’s 450 million consumers, where average household bills have jumped 42 % since 2021, according to EU data. “We need to stop taxing clean energy and start rewarding it,” said a senior European Commission official who asked not to be named because negotiations are ongoing.

The initiative follows Estonia’s announcement that rising battery-storage capacity is keeping daytime electricity prices above zero even during peak solar output, a sign that storage is beginning to flatten the duck curve that has plagued renewable integration. In Spain, the government will take over 993 km of first-generation motorways from private concessionaires on 1 January 2027, ending a decade of toll-based financing that critics say inflated transport costs. Meanwhile, the Netherlands admitted it is lagging neighbours in deploying utility-scale battery parks, a gap that risks undermining its 2030 renewable targets.

On transport, the EU’s fractious debate over the 2035 combustion-engine ban intensified as seven member states—led by Italy and Poland—demanded exemptions for synthetic fuels, forcing a fresh round of negotiations in Strasbourg next week. Germany’s largest car-sharing operator, Miles, reported that only 38 % of its new fleet in the first quarter were electric, down from 45 % a year ago, despite pledges to electrify 90 % of its fleet by 2027. “Consumers still see a €300 upfront fee as the psychological barrier,” said a PMO Estonia policy note.

Autonomous mobility remains stalled: Lithuania, which pioneered Europe’s first legal framework for self-driving cars in 2018, has yet to attract major manufacturers or significant investment. “After eight years of waiting, we’re back at the drawing board,” said Juras Žymančius, a partner at COBALT law firm. In the Czech Republic, the rail regulator is preparing legislation to allow driverless trains, a move that could cut operating costs by up to 15 % on regional lines.

Portugal, however, is accelerating digital public transport. From this week, the €20 monthly rail pass is available via the gov.pt app, eliminating paper tickets and cutting ticketing costs by an estimated €1.2 million annually. China, by contrast, is trying to slim down electric cars, ordering manufacturers to reduce battery size and vehicle weight to curb soaring material demand and grid strain.

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